Part and Part Mortgages

Part and part mortgages are a combination of both interest only and repayment (capital and interest) mortgages.

First Mortgage specialises in finding the best mortgage deals for you from the whole of the UK lender market. Call us now on 0345 603 1525 to talk to one of our experienced, friendly team about your current situation and what we can do to help.

What is a Part and Part Mortgage?

Part and part mortgages combine the two most popular types of mortgage repayment methods -interest only and repayment (capital and interest). With an interest only mortgage you just pay off the mortgage interest, not the loan capital. With a repayment mortgage your monthly sum covers both the interest and a percentage of the capital, meaning that you will have paid off the whole mortgage by the end of the loan period. You can choose what percentage of the loan you would like to pay off under each type of plan (usually around 80% repayment and 20% interest only).

Is a Part and Part deal right for you?

Interest only mortgages carry the risk that you may not make enough returns to cover the overall amount at the end of the mortgage term. However, with repayment (capital and interest) mortgages you usually pay a higher monthly fee. Many people opt for a part and part mortgage to enjoy the benefits of both types, but with less associated risk. For example, a loan may be £150,000. You might choose to pay £100,000 as a repayment mortgage and £50,000 as an interest only deal.

It’s worth speaking with a specialist and ensuring that you know how to make the most of the deal and how to prepare a good investment plan.

Call us on 0345 603 1525 for a free consultation with one of our friendly and experienced team. We are happy to discuss your situation and help you choose the best part and part option for you.